The table given below shows the values of different components of aggregate expenditure of an economy. The equilibrium level of gross domestic product (GDP) is _____.
A) $5.0 trillion
B) $5.5 trillion
C) $6.0 trillion
D) $6.5 trillion
E) $7.0 trillion

Question

The table given below shows the values of different components of aggregate expenditure of an economy. The equilibrium level of gross domestic product (GDP) is _____.  
A) $5.0 trillion 
B) $5.5 trillion 
C) $6.0 trillion 
D) $6.5 trillion 
E) $7.0 trillion

Quizplus · Accepted Answer

Equilibrium GDP occurs where aggregate expenditure equals GDP. In this table, at GDP of $6.0 trillion, aggregate expenditure is also $6.0 trillion. Therefore, C is the correct answer.

The Table Given Below Shows the Values of Different Components